How creating balanced sales territories can cut costs

By Kathleen Aoki

Creating balanced sales territories is important on many levels, including maintaining happy customers, a balanced workforce and lowering costs across the organisation.

When a business has unbalanced territories, it means too many salespeople are covering certain areas while neglecting others, leading to dissatisfied customers who feel underserviced, jeopardising sales in the process.

As such, balancing your sales force across territories can have a variety of benefits, most importantly to your bottom line. So if your business is need of redefining territorial boundaries, consider these financial benefits to balancing your sales territories:

  • Reduced travel expenses: When you spread your sales staff out across territories, you can define each worker's individual territory to an area close to home. This cuts down on overnight stays and long-distance travelling, reducing your annual travel budget.
  • Retention of good employees: Balanced sales territories prevent employee burnout due to overwork, or conversely boredom. Since the average small business will spend thousands of dollars recruiting, interviewing, screening and training a new employee, creating a happy work environment with low turnover can save big money over time.
  • Reduction of risk: Every sales force eventually experiences a bad salesperson. If your territories are drawn in a way such that one employee is handling a large number of customers, your liability increases. Sharing the load across different employees minimises this risk of dissatisfied customers and lost sales.

If your business needs help in defining and managing its sales territories, there are several software solutions available on the market today. By creating balanced sales territories, your business can go a long way to creating good relationships with both employees and customers, which can have a big impact on your bottom line.

Are your sales territories balanced? Share your experiences below.


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